Reference no: EM131796990

Hugle Corporation's activity-based costing system has three activity cost pools-Machining, Setting Up, and Other. The company's overhead costs have already been allocated to these cost pools as follows:

Machining	$	47,250
Setting up	$	125,354
Other	$	21,600

Costs in the Machining cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to products. The following table shows the machine-hours and number of batches associated with each of the company's two products:

MHs	Batches
Product E8	2,700	1,600
Product V8	8,550	730
Total	11,250	2,330

Additional data concerning the company's products appears below:

	Product E8		Product V8
Sales (total)	$	281,500	$	221,000
Direct materials (total)	$	74,500	$	83,400
Direct labor (total)	$	85,200	$	58,000

Required:
a. Calculate activity rates for each activity cost pool using activity-based costing. (Round your intermediate calculations to 2 decimal places. Omit the "$" sign in your response.)

 

b. Determine the amount of overhead cost that would be assigned to each product using activity-based costing. (Round your intermediate calculations to 2 decimal places. Omit the "$" sign in your response.)

c. Determine the product margins for each product using activity-based costing. (Round your intermediate calculations to 2 decimal places. Omit the "$" sign in your response.)